solutions for demanding business Asseco Group Results FY 2013

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2 Asseco Group Results FY 2013 Warsaw, 24 March

3 Consolidated Financial Highlights for FY 2013 PLN 5,898 m Sales revenues +7% PLN 4,474 m Proprietary software and services +7% PLN 798 m EBITDA -3% PLN 611 m EBIT -6% PLN 394 m Net profit +6% PLN 3,898 m Order backlog for % 3

4 Grupa Asseco 2013 Summary Polish market Stable growth implementation of large projects and tendering procedures with key clients resulting in the signing of long-term maintenance contracts. Israeli market A very good year record earnings of Magic and Sapiens. Operating profit 611 mpln Eastern European market 4.3 mpln +268% ACE and ASEE Negative impact of the political situation in the Czech Republic, bankruptcy of a customer in Serbia, and operational problems in the markets of South Eastern Europe. West Europe Significant improvement positive effects of the reorganization and economic recovery. Polish market mpln -13% ACE 61.2 mpln -17% ASEE 42.1 mpln -20% Eastern European market New investment starting business operations in Russia and adaptation to the Group standards. Western European market 36.0 mpln +89% Israeli market mpln +6% 4 4

5 Breakdown of Revenues and Higher Sales of Proprietary Software Foreign markets 70% 72% 76% 76% Sales 5,898 mpln +7% 64% 3,574 4,197 4,474 2,068 Poland 30% Sales of proprietary software and services (in mpln) 5

6 Contracts Signed in 2013 Banking and Finance 1,554 Public Administration 1,189 Number of contracts signed in ,572 Enterprises 1,829 1) Asseco Group, excluding retail products. The figures include contracts, orders and annexes. 6

7 Focusing on the development of repeatable sector-specific solutions Banking Healthcare Power industry 30 commercial banks and 224 cooperative banks in Poland Development of the core banking system def3000/cb New module def3000/ufe (Universal Front End) works also with third-party systems State-of-the-art settlements platform/payment hub def3000/cl (Clearing) Third-generation mobile banking More than 400 hospitals in Poland, 9,000 medical practices, 17 blood donation centers Over 60 installations of the new version of the system Best suited system for the Electronic Medical Records Advanced work on an international version of AMMS Development of new versions of the mhosp mobile application 8.7 million electricity consumption points (out of the total 17 million in Poland), the largest energy companies in Poland Entering into new business areas sales of electricity by telecommunications companies Successfully completed centralization of Tauron s billing systems for business customers and partially for retail customers Entering into international markets signed contract to implement a billing system in Ethiopia (USD 10 million) 7

8 Consistently Pursued Dividend Policy Dividends received / paid out* (in PLN millions) % 101% 109% % % % 50% 40% 83% Dividends paid out** Dividends received*** % Dividends received / Dividends paid out * Amounts of dividends for the stated periods ** Dividends paid out by Asseco Poland *** Dividends declared by subsidiary and associated companies (for Asseco Poland) 8

9 Consistently Pursued Dividend Policy 216 mpln 6.0% 5.0% 4.1% 3.1% 2.9% 2.41 PLN 2.60 PLN 1.1% 0.55 PLN 1.4% 1.03 PLN 1.47 PLN 1.80 PLN 2.19 PLN * DPS Dividend yield Dividend yields are calculated based on the Asseco's share price as at 31 December of the preceding year * Amount of dividend recommended by the Management Board 9

10 Return on Investments Asseco Central Europe Polish companies Asseco South Eastern Europe Western European companies Formula Systems Eastern European companies TOTAL Investment* [mpln] ,875.5 Market capitalization (for Asseco Poland)** [mpln] Return on dividend for 2012 (paid out in 2013) % 8.4% 7.9% 1.9% 3.4% 0.9% 6.3% Price / Earning*** (2013) 6.7x 10.9x 14.8x 14.9x 10.7x 22.0x 10.8x Net operating assets (ST) * Including cash investments and swaps, as well as the costs of company acquisitions recognized directly in profit or loss ** At the exchange rates of 20 March 2014 *** Non-IFRS net profit 10

11 Formula Systems Group musd musd Sales Cash and financial assets Sales Cash and financial assets * EBIT Market Cap EBIT Market Cap Results published on the NASDAQ * Figures for 2013 include cash raised from the issuance of shares by Magic in Q1 2014: 54.7 musd

12 Formula Systems Group mnis musd Sales Cash and financial assets Sales Cash and financial assets 1, , * EBIT Market Cap EBIT Market Cap , , Results published on TASE (Matrix IT) and on the NASDAQ (Formula Systems) * Figures for 2013 include cash raised from the issuance of shares by Magic in Q1 2014: 54.7 musd 12

13 Asseco Central Europe 13

14 Consolidated Financial Highlights for 2013 EUR m Sales revenue -2% EUR m Proprietary software and own services -2% EUR 24.5 m EBITDA -11% EUR 14.5 m EBIT -18% EUR 11.1 m Net profit -23% EUR 11.3 m NP for the Group -21% 14

15 Asseco CE Group Results 2013 by Companies GlobeNet 2% Statlogics 4% Slovanet 19% Asseco Solutions 20% Revenue EUR 131.3m Asseco CE 55% Statlogics 4% Slovanet 26% GlobeNet 3% EBITDA EUR 24.5m Asseco Solutions 9% solutions for demanding business Asseco CE 58% GlobeNet 0% Statlogics 7% Slovanet 7% Asseco Solutions 7% EBIT EUR 14.5m Asseco CE 79% Sales revenue EBITDA EBIT Net Profit % % % % Asseco Central Europe Group % % % % Asseco Central Europe % % % % Asseco CE SK % % % % Asseco CE CZ % % % % DanubePay n.a n.a n.a n.a. Asseco Solutions % % % % Asseco Solutions SK % % % % Asseco Solutions CZ % % % % Slovanet % % % % Statlogics % % % % GlobeNet % n.a > 0% > 0% Cons. eliminations n.a n.a n.a n.a. Figures in EUR million. Asseco Central Europe and Asseco Solutions include pro-forma consolidated results of individual entities. 15

16 Revenues 2012 SK Banking and Finance SK Enterprises SK Public Institutions CZ Banking and Finance CZ Enterprises CZ Public Institutions HU Banking and Finance HU Public Institutions Revenue 2013 Sales Revenue Analysis by Sector Actuals 2013 vs Actuals Revenues solutions for demanding business 2013 % ,0 120,0 134, ,3 Banking and Finance % 24.0 Enterprises % 53.9 Public Institutions % 56.6 Sales revenue % Slovak market % 71.7 Czech market % 55.2 Hungarian market % 7.5 Sales revenue % IFRS IFRS Δ IFRS Sales revenue % Proprietary software and own services % Gross profit (loss) on sales % Distribution costs % General administrative expenses % Net profit (loss) on sales % Other operating activities % Operating profit EBITDA Figures in EUR million % % Banking and Finance sector increased in 2013 y/y due to the contribution from new projects - mainly CMSS which is attributed to SK (where it is mostly delivered) in spite of the drop from the lower income from the maintenance and change requests. Public sector generated significantly lower revenues in 2013 y/y mainly due to drop from large contracts in CZ (Registry projects were delivered in 2012, only maintenance was provided in 2013). This decrease was partially offset by change requests and new small and mid sized projects. High base in 2012 in SK Public sector which was driven significantly by one-off HW reselling (EUR 2.2 m) resulted in the EUR -1.1 m drop in the reporting period. On the other hand, Telco operation was significantly better in the SK Enterprises sector with y/y growth by EUR 5.2 m. 16

17 Business Summary Important Signed Deals / CZ + SK Českomoravská stavební spořitelna (Czech-Moravian Building Society) implementation of core banking system StarBUILD, CRM implementation, ODS and system integration assurance, EUR 12.6 m for 30 months project SKUP (mbank, Poland) clearing and settlement centre services, PLN 10 m RBP Health Insurance Company development and implementation of new central IS, including core system, DMS, ERP, WF and reporting, EUR 1.6 m Český statistický úřad (Czech Statistical Office) re-design of information system of statistical office & service to the re-design of information system, EUR 2.5 m Ministerstvo školstva, vedy, výskumu a športu SR (Ministry of Education, Science, Research and Sport) selling of interactive sets, EUR 7.6 m New Customer New Customer New Customer New Customer New Customer Najvyšší kontrolný úrad (Supreme Audit Office ) new KISII, EUR 2.9 m Česká správa sociálního zabezpečení (The Czech Social Security Administration) extension of IS (159 project), EUR 1.4 m ČEZ ICT preparation of data for LV distribution network SCADA in system TE GIS ČEZ Distribuce a. s., EUR 3 m New Contract New Contract New Contract 17

18 Financial Perspectives Trends 2012 to 2014 solutions for demanding business EUR Thousands Backlog+porde 2012 Backlog+porde 2013 Backlog+porde 2014 Asseco CE Asseco Solutions Slovanet Hungary adjust Asseco CE Group ,0 40,0 20,0 0, Asseco CE Backlog + PORDE figures as at the end of February 2010, 2011 and include one-off RPP EUR 8m ,0 20,0 0,0 Asseco Solutions Asseco Solutions (Germany) 30,0 Slovanet 150,0 Asseco CE Group 20,0 100,0 10, , , , Figures in EUR million. 18

19 Financial Information 19

20 Own Product Revenues Grow by 7% Δ Q Q Δ Sales revenues 5, , % 1, , % Proprietary software and services 4, , % 1, , % Gross profit (loss) on sales 1, , % % Gross profit margin 24.7% 26.7% -2.0 pp 21.5% 25.5% -4.0 pp Distribution costs % % General administrative expenses % % Other operating activities % % Operating profit % % Operating profit margin 10.4% 11.8% -1.4 pp 7.5% 10.2% -2.7 pp Non-IFRS operating profit % % Non-IFRS operating profit margin 12.0% 13.7% -1.7 pp 8.8% 12.0% -3.2 pp EBITDA % % EBITDA margin 13.5% 14.8% -1.3 pp 10.2% 12.9% -2.7 pp Figures in PLN millions Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 20

21 Strong Growth in Revenues from Proprietary Software and Services 2013 / Change 2013 vs 2012 Sales revenues Proprietary software and services Operating profit (non-ifrs) Polish market 1, % 1, % % Israeli market* 2, % 2, % % Central European market % % % South Eastern European market % % % Western European market % % % Eastern European market % % % Total ** 5, % 4, % % * Figures for 2012 include the financial results of Sapiens for the period from February to December 2012; whereas, figures for 2013 include the financial results of Sapiens for the period from January to November ** Figures after consolidation eliminations Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 21

22 Reconciliation of Operating Profit and Net Profit 2013 IFRS 2012 IFRS Δ IFRS 2013 non-ifrs 2012 non-ifrs Δ non-ifrs Operating profit % % Interest expense Foreign currency transactions Other of which: result of transactions associated with company acquisitions 2013 loss of control over Sapiens Int. / 2012 regaining of control over Sapiens Int. changes in the write-down on commercial papers issued by PI Pre-tax profit % % Income tax % % Share in profits/losses of associates % % Net profit % % Net profit attributable to shareholders of the parent company % % Figures in PLN millions Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 22

23 Generated Cash Flows Asseco Group Asseco Poland CFO CAPEX* Free cash flow** Cash conversion*** 94% 86% 95% 74% * Excluding investments in investment property, net of grants received ** CFO + CAPEX *** Free cash flow / non-ifrs EBIT Figures in PLN millions Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 23

24 Stable Liquidity Position (Asseco Poland) solutions for demanding business As at 31 December 2013 ST LT Cash and financial assets Debt and finance lease: Bank loans Assets serving as bank loan collateral* Finance lease liabilities Net cash (ST) Inventories + ST receivables ST liabilities** Net operating assets (ST) Available bank overdrafts Figures in PLN millions * The book value of real estate serving as security for a bank loan: PLN million; ** Inventories + short-term receivables + short-term prepayments short-term liabilities excluding bank loans and finance lease liabilities 24

25 Appendix 25

26 Consolidated Sales Revenues by Products and Sectors 2013 % % Proprietary software and services 4,474 +7% 4,197 5,898 12% 12% Third-party software and services % 628 Hardware and infrastructure % 693 Other sales 6-45% 11 Sales revenues 5,898 +7% 5,529 34% Banking and Finance 1,994 +8% 1,854 26% 5,898 40% Enterprises 2,355 0% 2,364 Public Institutions 1, % 1,311 Sales revenues 5,898 +7% 5,529 Figures in PLN millions 26

27 Consolidated Order Backlog for 2014 In comparison to the order backlog presented in March 2013 Sales revenues +1% Proprietary software and services +8% 3,856 3,898 3,257 3, Figures in PLN millions; Order backlog for 2013 as at 14 March 2013; Order backlog for 2014 as at 18 March

28 Financial Results of Subsidiaries* Sales revenues Operating profit Net profit Poland** 1, , Asseco Poland 1, , Asseco Business Solutions Other Consolidation eliminations Formula Group 2, , Matrix IT 1, , Magic Software Sapiens Int Asseco Central Europe Group Asseco South Eastern Europe Group Western European market Eastern European market * Financial results for the periods consolidated by Asseco Poland. ** Net profit excluding dividends to be recognized as income of Asseco Poland. 28

29 Own Product Revenues Grow by 7% solutions for demanding business 16.9: costs of equity-settled employee payment transactions 79.2: amortization charges on intangible assets recognized from a business combination 16.9: costs of equity-settled employee payment transactions 79.2: amortization charges on intangible assets recognized from a business combination 24.8: costs of equity-settled employee payment transactions 24.8: costs of equity-settled employee payment transactions 2013 IFRS 2013 non-ifrs 2012 IFRS adjustment adjustment 2012 non-ifrs Δ IFRS Δ non- IFRS Sales revenues 5, , , , % +7% Proprietary software and services 4, , , , % +7% Gross profit (loss) on sales 1, , % Gross profit margin 24.7% 26.7% -2.0 pp Distribution costs % General administrative expenses % Other operating activities % Operating profit % -6% Operating profit margin 10.4% 12.0% 11.8% 13.7% -1.4 pp -1.7 pp EBITDA % -4% EBITDA margin 13.5% 13.8% 14.8% 15.3% -1.3 pp -1.5 pp Figures in PLN millions Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 29

30 Reconciliation of Operating Profit and Net Profit Q IFRS Q IFRS Δ IFRS Q non-ifrs Q non-ifrs Δ non-ifrs Operating profit % % Interest expense Foreign currency transactions Other of which: result of transactions associated with company acquisitions loss of control over Sapiens Int changes in the write-down on commercial papers issued by PI Pre-tax profit % % Income tax % % Share in profits/losses of associates % % Net profit % % Net profit attributable to shareholders of the parent company % % Figures in PLN millions Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 30

31 Own Product Revenues Grow by 7% solutions for demanding business 3.7: costs of equity-settled employee payment transactions 18.9: amortization charges on intangible assets recognized from a business combination 3.7: costs of equity-settled employee payment transactions 22.4: amortization charges on intangible assets recognized from a business combination 5.9: costs of equity-settled employee payment transactions 5.9: costs of equity-settled employee payment transactions Q IFRS Q non-ifrs Q IFRS adjustment adjustment Q non-ifrs Δ IFRS Δ non- IFRS Sales revenues 1, , , , % +11% Proprietary software and services 1, , , , % +7% Gross profit (loss) on sales % Gross profit margin 21.5% 25.5% -4.0 pp Distribution costs % General administrative expenses % Other operating activities % Operating profit % -18% Operating profit margin 7.5% 8.8% 10.2% 12.0% -2.7 pp -3.2 pp EBITDA % -13% EBITDA margin 10.2% 10.4% 12.9% 13.3% -2.7 pp -2.9 pp Figures in PLN millions Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 31

32 Reconciliation of Operating Profit and Net Profit 2013 IFRS 2013 non-ifrs 2012 IFRS adjustment adjustment 2012 non-ifrs Operating profit % -6% Interest expense Foreign currency transactions Other Δ IFRS Δ non- IFRS of which: result of transactions associated with company acquisitions 2013 loss of control over Sapiens Int. / 2012 regaining of control over Sapiens Int. changes in the write-down on commercial papers issued by PI Pre-tax profit % -12% Income tax % +4% Share in profits/losses of associates % -28% Net profit % -16% Net profit attributable to shareholders of the parent company % -14% Figures in PLN millions Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 32

33 Reconciliation of Operating Profit and Net Profit Q IFRS Q non-ifrs Q IFRS adjustment adjustment Q non-ifrs Δ IFRS Δ non-ifrs Operating profit % -18% Interest expense Foreign currency transactions Other of which: result of transactions associated with company acquisitions loss of control over Sapiens Int changes in the write-down on commercial papers issued by PI Pre-tax profit % -30% Income tax % -3% Share in profits/losses of associates % -107% Net profit % -36% Net profit attributable to shareholders of the parent company % -48% Figures in PLN millions Non-IFRS figures include adjustments for amortization charges on intangible assets recognized from a business combination, and for the costs of equity-settled employee payment transactions, as well as adjustments for results on settlements of mergers & acquisitions transactions presented within financial activities 33

34 Thank you 34